The organization, which administers federal student loanprograms in Texas, will consolidate its corporate operations and acall center into the building. The purchase takes a big chunk ofspace off the vacancy lists at once, adds vitality to the officemarket at La Frontera and moves 550 jobs to Round Rock. Thebuilding has been empty since it opened earlier this year.

Kennedy-Wilson International and Fortis Advisers, a subsidiaryof Fortis Inc., a Dutch insurance and banking company, own thebuilding in a partnership called FKW La Frontera Ltd. The project'scost was reported to be $20 million when construction began in2001. Williamson County appraisal records peg its assessed marketat $16 million.

Beverly Hills, CA-based Kennedy-Wilson was not looking to sellthe building, but lease discussions between Texas Guaranteed andKennedy-Wilson turned into purchase negotiations. James Patterson,Texas Guaranteed's CFO, tells that the acquisition willlower the net occupancy costs, but he won't reveal by how much.

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